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But don't fixed width fonts, which many consider the best for code, mean fixed width spaces too?

If that were the case tabs would be fixed width too. But they're not. There's no fundamental reason tabs have to be the only variable-width character.

Tabs would only be variable in the number of spaces uses, but those spaces will be fixed width.

And spaces could be variable in the number of "sub-spaces" used. Each could be say 1/8 of a regular space.

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